Week 5 ir

Question 1

Mercantilism

Answer 1

economic nationalism, wealth depends on available capital

Question 2

Economic liberalism

Answer 2

Politics & economy should be separate, leave economy to the free market, high export/import. Politics should focus on optimal function free market

Question 3

Marxism & Economy

Answer 3

Economy determines political power structure, exploitation inherent to capitalism. International trade widens gap between core & periphery

Question 4

Bretton Woods

Answer 4

1944, tied dollar to gold price = fixed exchange rate (fixed to a western standard though)

Question 5

GATT

Answer 5

Now World Trade organisation. only applied to industrial products, eu protects it’s own agriculture

Question 6

WTO Deadlock

Answer 6

Developed wants more countries to be recognised as developed (to relief them from privileges). Undeveloped wants free market on intellectual property.

Question 7

Modernisation thesis

Answer 7

Maximise investments = open up economy & development will follow (Neo-liberal idea).

Question 8

Anti-industrialization theory

Answer 8

The idea that all advanced economies have followed the same path is wrong, all rich countries have protected their own economy at some point (kick-the-ladder, concept).

Question 9

Dependency theory

Answer 9

keep underdeveloped countries economically tied to developed countries = dependency. Wallerstein leaves room for for example china to change categories, core remains hegemonic power (US)

Question 10

Trickle down effect

Answer 10

If the rich get richer it will “trickle down” to the poorer classes = onzin

Question 11

HDI

Answer 11

Human development needs to not be focussed on economy instead education, life expectancy etc.

Question 12

Sustainable Development goals

Answer 12

Leuk idee, only focusses on the symptoms not the problem (capitalism? Climate change? )

Question 13

Washinton consensus

Answer 13

Liberalisation of economy

Question 14

Comparative advantage

Answer 14

Specialising in one good so the total is more effective

Question 15

Non-tariff barrier

Answer 15

Blocking of trade which isn’t putting taxes on something

Question 16

Autarky

Answer 16

the separation of a country from the world economy to protect it’s own

Question 17

Protectionism

Answer 17

A country restricts imports In an effort to protect it’s own economy

Question 18

Infant-industry protection

Answer 18

imports of a particular good are restricted to allow domestic productive capacity to develop

Question 19

Currents account

Answer 19

The country’s balance of trade in goods and services plus it’s receipts

Question 20

Austerity

Answer 20

A policy by which governments raise interest rates or reduce government spending in an effort to reduce price inflation

Question 21

International Monetary Fund

Answer 21

Created in 1946 to facilitate and reinforce the exchange rate systems created in the aftermath of ww2

Question 22

Convertible currency

Answer 22

A currency that can be exchanged at market price for another currency

Question 23

Keynesian liberalism

Answer 23

A version of liberal economic thought stating that governments must play and important role in managing their economies

Question 24

Weaponised interdependence

Answer 24

The use by one country of it’s control over global or regional economic networks to coerce politically as state

Question 25

Hegemonic stability theory

Answer 25

A theory that predicts the dominant power to use that power to influence world economy

Question 26

Resource Curse

Answer 26

the possession of natural resources by developing countries, is more likely to hinder rather than to advance the development prospects of those countries

Question 27

Import- substituting- industrialisation

Answer 27

A national development strategy that seeks to avoid international economic linkages, focusses on domestic production

Question 28

National Champion

Answer 28

State pursuing ISI , government appoints national firms to make substituted national goods

Question 29

International Commodity cartels

Answer 29

Grouping of developing countries that try to control the supply of raw material, to drive up prizes

Question 30

International commodity agreement

Answer 30

Used to establish and acceptable price for raw goods

Question 31

Export- led growth

Answer 31

A strategy that argues developing countries should rely on price competitive exports

Question 32

Asian tigers

Answer 32

Asian countries who achieved rapid growth rates using a strategy of export-led growth

Question 33

Beijing Consensus

Answer 33

The idea that for some poor countries, development can be best attained by government controls.

Question 34

Official development assistance (ODA)

Answer 34

Grants or loans provided by a donor government to a developing country

Question 35

Poverty trap

Answer 35

Countries so poor it can only pay day to day short term things instead of long term investments